Understanding the process
Security token offerings are a way to raise funds using blockchain technology.
This solution enables projects to be funded in a secure environment (through a series of controls relating to the identity of issuers and investors, as well as the transactions and assets involved) without traditional banking intermediation.
For more information about the Security token offerings and its conditions, please see the dedicated factsheet by following this link
To conduct a security token offering, you must obtain administrative authorisation in advance, in the form of a certificate, according to the conditions stipulated by sovereign ordinance.
Authorisations are issued by the Minister of State following receipt of a reasoned opinion from a commission responsible for reviewing the application. The commission issues its opinion following receipt of the documents that make up the application for a certificate, as set out in the application.
To obtain the application, any applicant can download it via the following link:
Applicants are asked to provide all items set out in articles 8 to 11 of the Sovereign Ordinance no. 8.258 of 18 September 2020:
- The duly completed application pack, including information on the issuer and project leaders
- A summary of the project presentation, highlighting the market opportunities and existing competition, the policy on countering money laundering and terrorist financing, supported by the required technical documents, including a financial study of the project
- The Investment White Paper
- Information about the arrangements according to which the issuer intends to place the funds raised in escrow. This mechanism must offer guarantees that are sufficient to ensure reliability, operability and efficiency
In accordance with Article 4 of the Sovereign Ordinance no. 8.258 of 18 September 2020, the applicant is hereby informed that information submitted as part of an application for authorisation is liable to be communicated to relevant government offices during review of the application, in compliance with the provisions of
The application should be sent:
- By post to:
Secrétariat Général du Gouvernement
Place de la Visitation
- AND by email to the following address: firstname.lastname@example.org
If the application is incomplete, the Commission Secretariat will inform the applicant that their application is inadmissible and advise them which additional documents or information they need to supply.
During the process of reviewing the application, additional documents may be requested.
Once the application is considered to be complete and compliant, the applicant will be notified that the application is admissible.
Applicants are informed that they may be invited to present their projects to the commission.
Applicants are notified of the Minister of State’s decision by the Secretariat of the Government within two months of receipt of the complete application for authorisation. Please note that this deadline may be deferred once, for the same length of time.
The offering is carried out via a digital platform authorised by the Minister of State.
For each token issue, the operator provides the issuer with a secure subscription platform. This is a white-label platform via which investors can:
- Identify themselves
- Log in
- Consult the legal documentation for the security
- Supply the required data and documents to confirm that they comply with the eligibility criteria set out by the issuer
- Subscribe to tokens representing the security issued
- Obtain the necessary instructions to make payment
Investors must have an Ethereum wallet. In the event that the investor or their third-party token holding service loses access to the wallet, the issuer or its appointed agent is able to change the address and transfer the tokens via the platform.
To provide a solution for managing securities after issue, the following will be made available:
- An "issuer" interface enabling issuers to check investors’ positions and transactions with regard to their security, and to run the necessary events affecting securities
- An "investor" interface enabling investors to check their position, events affecting securities, or any other communication from the issuer (or its agent)